GNE
25/08/2015 08:34
FLLYR
PRICE SENSITIVE
REL: 0834 HRS Genesis Energy Limited (NS)
FLLYR: GNE: Genesis Energy FY2015 results
Genesis Energy Limited (GNE): Strong result in challenging conditions
EBITDAF $344.8 million - up 12% from $307.8 million
Net Profit $104.8 million - up 113% from $49.2 million
Earnings per share 10.5 cents - up 113% from 4.9 cents
Dividend per share 16.0 cents - up 23% from 13.0 cents
Free cash flow $197.7 million - up 22% from $161.8 million
Stay in business capital expenditure $43.6 million - down 20% from $54.5
million
Against the backdrop of variable weather conditions, sustained retail
competition, a subdued wholesale market and declining oil prices, Genesis
Energy's diverse portfolio allowed it to post a strong financial result for
the full year to the end of June 2015.
Earnings before finance expense, income tax, depreciation, depletion,
amortisation, impairment, fair value changes and other gains and losses
(EBITDAF) were $344.8 million, 12% higher than the $307.8 million attained in
Financial Year 2014 (FY2014). Revenue grew to $2.1 billion from $2.0 billion
in the previous year.
Genesis Energy's Chair, Dame Jenny Shipley, said that the Board of Directors
was satisfied with the overall performance of the Company in what has been a
challenging year. The Board of Directors also noted the higher than forecast
Net Profit After Tax of $104.8 million, up 113% from $49 million in 2014, and
confirmed that a final dividend of 8 cents per share will be paid on 16
October 2015, with a record date of 2 October 2015.
The Company's two retail brands, Genesis Energy and Energy Online, ended the
year with customer connections stabilising at 636,676 (647,047 in FY2014)
after sustained competition for customers from both traditional and new
competitors. Retail gas volume and LPG sales were up 5.8% and 15%,
respectively. Despite a 1.7% loss in customer accounts, the Customer
Experience segment improved its earnings contribution to the bottom line
through improved costs to serve and increased margin per customer.
Genesis Energy's Chief Executive, Albert Brantley, said the Company continued
to manage risk and maximise value from all of its generation assets.
While at times in the early part of the year the coal/gas fired Rankine Units
at the Huntly Power Station ran regularly, they sat largely idle in May and
June as the Company took advantage of lower wholesale spot prices, as well as
purchasing hedges for less than fuel cost to meet its retail load.
Reflecting this continued decrease in utilisation of the Rankine Units over
recent years, the Company recently announced that the Rankine Units would be
permanently retired by December 2018, unless market conditions change
significantly.
Total net debt (adjusted for foreign currency translation and fair value
movements related to USD denominated borrowings) decreased 6% to $905.1
million as at 30 June 2015.
At $197.7 million, Free Cash Flow in FY2015 was 22% higher than a year ago.
The key driver of this outcome was lower than expected 'stay in business'
capital expenditure of $43.6 million.
Outlook
"We have set a clear objective for the Company as we move into 2016 and
beyond. Our strategic direction focuses effort into developing new revenue
streams from our core business activities, driving greater value from our
operating practices and making energy services simple for our customers," Mr
Brantley said.
The Company's recently announced retirement of the Rankine Units, and the
early termination of the Solid Energy coal supply contract, continues to be a
focus for the Company and will result in a reduction in operating expenditure
and cost savings at the Huntly Power Station beginning to materialise well
before their final retirement date in 2018.
Kupe continues to produce oil and gas at consistent rates. Currently output
is approximately 10% above the base level. Although the low international oil
prices are likely to have some impact on Kupe EBITDAF, current hedging in
place for FY2016 covers 80% of the projected oil production at US$85.40 per
barrel.
Genesis Energy expects to report FY2016 EBITDAF in line with that reported in
FY2015, and to increase its total dividend declared in FY2016 in line with
the Company's progressive dividend policy.
ENDS
For media enquiries, please contact:
Richard Gordon
Public Affairs Manager
Genesis Energy
P: 09 951 9280
M: 021 681 305
For investor relations enquiries, please contact:
Rodney Deacon
Group Manager Strategy and Investor Relations
Genesis Energy
P: 09 571 4970
M: 021 631 074
End CA:00268996 For:GNE Type:FLLYR Time:2015-08-25 08:34:42
